How?

( Dr. Shambolic je suis charlie, Thu 28 Apr 2011, 18:07, 1 reply)

If you have "silver" and the "storage firm" goes bust you're fucked.

(Me, I'm not... in any way intoxicated, Thu 28 Apr 2011, 18:18, closed)

I bought physical. It's in a safe place.
Wouldn't touch an ETF even if it promised to suck my widgie.
( underpont making all kinds-a-gains, Thu 28 Apr 2011, 18:34, closed)

I don't know what this means.
Even with the "helpful" "quotes".
( Dr. Shambolic je suis charlie, Thu 28 Apr 2011, 18:52, closed)

Basically it is this:
You can give some money to certain companies and they're supposed to buy the equivalent amount in silver. So now you own 'paper' silver. A promise that they'll give you the bullion whenever you decide to cash out.

Thing is, these companies have not been buying the silver and if everyone decided to 'cash out', meaning get delivery of the bullion they've bought, the company would go bust.

Basically, they're practicing fractional reserve banking with Silver (and Gold) bullion.

A lot of people are going to get stung to fuck.

I hope this makes sense, I've had a few beers and a bottle of wine.
( underpont making all kinds-a-gains, Thu 28 Apr 2011, 19:22, closed)

ETCs I understand. Although I thought they tightened up the rules over the last few years when people remembered that bankers are all dirty shysters.
But the previous poster talked about storage (or "storage") which is only relevant for physical silver (or "silver"). Isn't it?
( Dr. Shambolic je suis charlie, Thu 28 Apr 2011, 19:36, closed)

what?
Storage: If you buy silver or gold online they will send you a certificate saying you own as much G or S as you've bought. But you have not bought any metals. You have a promise...from someone you have never met!

A promise which is not really a promise. Forget paper...metal is the future.

Side note: pre 1992 2 pences and 1 pences are 95% copper. The metal is worth about twice it's face value.
( underpont making all kinds-a-gains, Thu 28 Apr 2011, 20:28, closed)

Eh?
You don't physically have the silver bullion in a safe in your house, do you? It's stored somewhere for you. That's storage.

Storage isn't relevant to an ETC since that's just a bit of paper.
( Dr. Shambolic je suis charlie, Fri 29 Apr 2011, 9:20, closed)

The quotes indicate a potential lie.
You pay for someone to store silver you have not seen and which may not exist.
regulations don't really apply much in the real world -- hence, for example, the criminals who fraudulently sold endowments based upon obvious sources of loss getting off scott free.
(Me, I'm not... in any way intoxicated, Thu 28 Apr 2011, 21:13, closed)

I have the distinct feeling you're now backtracking because your previous post was nonsense.

( Dr. Shambolic je suis charlie, Fri 29 Apr 2011, 9:20, closed)

Nope.
I'll translate the quotes in my earlier post:
"Silver" means you buy the rights to some silver, not the metal itself.
"Storage firm" means although the company profess to store silver for you, they're really only holding onto certificates or receipts representing silver in a third party's storage -- this could be actual real silver they have in a bank vault so they don't have their own facility to worry about or it could be e-silver or they themselves might have bought "Silver" which may or may not exist.
If you own actual Silver (no quotes) and store it yourself then you have actually invested in Silver.
If you pay a proper Storage Firm (no quotes) who hold real Silver then you have also actually invested in Silver.
If you pay a "Storage Firm" then you've just invested in someone else who may or may not have invested in Silver.
(Me, I'm not... in any way intoxicated, Fri 29 Apr 2011, 13:49, closed)

OK.
Thanks for confirming that you were just blustering and backtracking. You could probably have done it in fewer words though.
( Dr. Shambolic je suis charlie, Fri 29 Apr 2011, 15:38, closed)

Thanks for confirming you didn't actually read my posts.

(Me, I'm not... in any way intoxicated, Sat 30 Apr 2011, 12:10, closed)

No. But I "read" your "posts".

( Dr. Shambolic je suis charlie, Sat 30 Apr 2011, 20:48, closed)

:-)
Thanks, I really did laugh.
(Me, I'm not... in any way intoxicated, Sun 1 May 2011, 23:17, closed)